Risk Analysts are the backbone of any Risk department covering any of the 4 main core areas, Credit Risk, Operational Risk, Market Risk and Regulatory Risk.
Each area defines the purpose of each specialised role. An operational risk analyst may deal with health & safety issues or legal and fraud risks; credit risk analysts usually deal with portfolio analysis or scorecard development. Market risk analysts may be involved with forecasting or monitoring sector trends etc and regulatory risk analysts deal with compliance or audit issues such as the Basel Accord for the Financial Services Authority.
More increasingly within the industry, Risk Analysts are tasked with responsibilities touching all 4 key areas such as scorecard development/modelling complying with the Basel II framework.
Skills & Qualifications
Skills & Qualifications required usually include a numerate or other relevant degree ie, Mathematics and/or Statistics. Software applications and programming languages differ but from an Analysis point of view most organisations use standard packages such as SPSS or SAS. SAS (Statistical Analysis System) has become the preferred tool for most organisations within the Financial Services sector for most Data and Risk However, roles within Operational Risk usually don't require such a statistical background.
Risk Analysts within the Financial Services industry are well respected with good career progression and enjoy excellent benefits with employers such as Banks, Building Societies, Consultancies and many other organisations for the Retail, Corporate and Investment sectors. Usually an Analyst can expect to progress to Senior Analyst level within 3 - 5 years.